A shortage of skilled personnel is a constraint on businesses operating in the automotive industry.
The Government should continue its investment in the Skilling Australians Fund to address the current skills shortage and renew the focus on apprenticeships as an attractive career pathway in the automotive industry.
A shortage of skilled labour in the automotive sector is a constraint on businesses operating in that sector. A survey conducted for the Victorian Automobile Chamber of Commerce (VACC) estimates a total shortage of 27,377 skilled personnel in 2016-17 and is estimated to grow to 35,083 during 2017-18, moderating slightly to 31,202 in 2018-19. The impact of skilled shortages includes loss of productivity, increased labour costs to retain skilled technicians, and use of sub-standard labour requiring greater supervision particularly in regional areas.
In the 2017-18 Budget the Government announced a commitment to address skills shortages through the creation of the Skilling Australia Fund, with a focus on apprenticeships, trainees and pre-apprenticeships, and higher apprenticeships.
More information about the Skilling Australia Fund can be found on Department of Education website